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Fed kept to its plan and reduced monthly bond purchases by $10 billion per month as overall improvement in the US economy is still in place.  At least one can say they are consistent in their approach I guess.

Latest buzzword in global market is EM Contagion (that’s us unfortunately) as a cut in stimulus reduces liquidity in emerging markets and causing sell-off, hence rate hikes from Turkey, India & SA yesterday.  But to no avail I’m afraid to say, as markets appeared to view the rate rise as insufficient and the rand was down more than 2% after the rate decision at 11.25.  Same story for Turkey.

If you've wondered who are the EM Counties, here they are:

BRICS:
Brazil, Russia, India, China, South Africa

MIKT:
Mexico, Indonesia, South-Korea, Turkey

And if you wondered what contagion means, it is not nice either: infection, pollution, corruption, contamination. 

So you would be forgiven to think that first world economies are afraid that itty-bitty us and others like us will have a negative impact on their markets and that’s why they are selling off. And we are selling off because they are reducing liquidity in our markets.  We'll that my simplistic interpretation of events in any case.  Fun times ahead.


DJ -1.19%
S&P -1.02%

VIX +9.81% to 17

IGMT40 Cash +24 points

Eco Calendar:

South Korea on holiday

US GDP 15:30
US Pending home sales 17:00

New lows for Ellies, Reunert, Growthpoint, Shoprite, Aveng, Emira, Acucap, AVI,Massmart, new high Lonmin.

Gold 1242 vs 1262          , $/R 11.20 vs 11.28          , Copper 7.11 vs 7.18        , Nickel 13.75 vs 13.92     , Oil 97.94 vs 97.42 

Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye Gold” or “the Company”)

Production update and trading statement for the Quarter and Year
ended 31 December 2013

Westonaria, 30 January 2014: Sibanye Gold (JSE: SGL & NYSE: SBGL)
advises that the Group will report approximately 12 000kg
(386koz) of gold production for the December 2013 quarter, which
is 2% higher than guidance given on 31 October 2013

Average All-in costs for the quarter are expected to be
approximately R334 000/kg (US$1 050/oz), approximately 6% lower
than guidance in Rand terms and 9% lower in US Dollar terms.

Gold production for the year ended 31 December 2013 will be
approximately 44 500kg (1.43Moz), with average All-in cost of
approximately R355 000/kg (US$1 150/oz). This is significantly
better than guidance provided in May 2013 of 40 000kg (1.29Moz)
for the year, and average All-in cost higher than R380 000/kg.

Sibanye Gold is currently finalising its Operating and Financial
Results for the six months and year ended 31 December 2013, which
will be released on SENS at 08:00 (CAT) on Thursday, 20 February
2013 and on the Company website www.sibanyegold.co.za.

Earnings per share (“EPS”) and headline earnings per share
(“HEPS”) for the six months ending 31 December 2013 are expected
to be between 187 cents per share and 197 cents per share, based
on an estimated 734.4 million weighted average ordinary shares in
issue during the six months ended 31 December 2013. EPS for the
year ended 31 December 2013 is expected to be between 255 cents
per share and 265 cents per share, and HEPS between 350 cents per
share and 360 cents per share, based on 650.6 million weighted
average ordinary shares in issue during the year ended 31
December 2013.

The increase in EPS and HEPS for the six months ended 31 December
2013 relative to the trading statement released on 23 October
2013, is attributable to the higher production and lower costs
achieved, a marginally higher realised Rand gold price and an
adjustment to the deferred tax rate.

The financial information on which the trading statement has been
based has not been reviewed or reported on by the Company’s
auditors.
ENDS

Gold 1246 vs 1242          , $/R 11.17 vs 11.20          , Copper 7.08 vs 7.11        , Nickel 13.77 vs 13.75     , Oil 97.14 vs 97.94 

Asian shares lost more ground on Monday as strains in emerging markets show little sign of abating, while growing pressure for another policy easing in Europe shoved the euro to 10-week lows. Japan's Nikkei (NIK:^9452) again led the way with a loss of 1.5 percent, taking it to lows not seen since mid-November

Gold 1258 vs 1246           , $/R 11.23 vs 11.17          , Copper 7.08 vs 7.08        , Nickel 13.70 vs 13.77     , Oil 96.61 vs 97.14

Asia-Pacific shares outside Japan fell about 1.4 percent, touching its lowest level since early September at one point and flirting with its biggest one-day decline since August. Hong Kong shares, reopening on Tuesday after the Lunar New Year holiday, caught up with plunges elsewhere.



Glencore Xstrata plc (GLNCY)
 -Other OTC

10.14 0.47(4.39%)      

Gold 1254 vs 1258 , $/R 11.13 vs 11.23 , Copper 7.12 vs 7.08        , Nickel 13.76 vs 13.70     , Oil 97.66 vs 96.61

GLNCY +0.64% 

Panasonic Corp jumped 17 percent after its quarterly earnings more than tripled, while Toyota Motor Corp rose 5 percent after predicting record annual profits. MSCI's broadest index of Asia-Pacific shares outside Japan swung to a 0.3 percent loss, while South Korea could only eke out a gain of 0.4 percent

Johannesburg - South Africa's seasonally-adjusted HSBC Purchasing Managers' Index slipped further in January to 50.3 from 50.5 in December.

It is just managing to stay within expansionary territory as the economy starts the year in a fragile state.

"This month's reading illustrates that the economy faces an uncomfortable combination of weak growth and upside price pressures," said HSBC economist David Faulkner.

This was the weakest reading of the index since September 2013, when it was at 49.8.

What was the NFP results? US red.

Direction for today

14:00 GB Bank of England QE Total prev 375B, exp 375B
14:00 GB Interest Rate, prev 0.50%, exp 0.50%
14:45 EU Interest Rate, prev 0.25%, exp 0.25%
15:30 ECB Press conference
15:30 US Initial Jobless Claims prev 348K, exp 335K
15:30 US Trade Balance, prev -34.30B, exp -36.00B

Europe running nicely atm, FTSE +0.73%, DAX +1.21%, CAC +1.15% & SA40 flat.

US futures DOW +0.53%,  S&P +0.62%